[Congressional Record Volume 161, Number 77 (Tuesday, May 19, 2015)]
[Extensions of Remarks]
[Page E751]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      STUDENT LOAN DEBT RELIEF ACT

                                 ______
                                 

                           HON. JIM McDERMOTT

                             of washington

                    in the house of representatives

                         Tuesday, May 19, 2015

  Mr. McDERMOTT. Mr. Speaker, I rise today to introduce the Student 
Loan Debt Relief Act. This legislation relieves a potential tax burden 
that may be imposed on student loan borrowers that use income-based 
repayment and income-contingent repayment programs.
  This bill eliminates a tax penalty on student loan borrowers. After 
20-25 years of payments on the income-based repayment or income-
contingent repayment plans, student loan borrowers can have their 
outstanding debt balance forgiven. However, under current law, the 
amount forgiven is considered income payable immediately.
  Programs such as the income based repayment program have helped in a 
small way to ensure that students can continue to pursue their dreams 
and get on with their lives while they responsibly pay off their 
student debt.
  It also makes students the promise that if they hold up their end of 
the bargain for twenty to twenty-five years they will have their 
remaining debt forgiven.
  Slamming students and families with a massive tax bill after they 
have played by the rules is just wrong. This bill is yet another step 
toward leveling the playing field for a generation students being 
devastated by the growing student loan crisis in this country.

                          ____________________